Blurb
Strong public health systems and welfare schemes help reduce healthcare burden.
CH NEWS
BENGALURU
In a country where a serious illness can wipe out years of household savings, Karnataka has emerged as one of India’s better-performing states in protecting families from crippling medical expenses. The latest National Health Accounts (NHA) estimates for 2022-23 show that Karnataka has significantly reduced the financial burden of healthcare on its citizens, outperforming most states in the country.
According to the report released last week, out-of-pocket expenditure (OOPE) accounts for just 29.2 per cent of Karnataka’s Total Health Expenditure (THE), substantially lower than the national average of 43.4 per cent. Among the 21 states covered in the report, only Uttarakhand and Jammu & Kashmir recorded comparable figures, placing Karnataka among the top states in limiting direct healthcare costs borne by households.
What makes Karnataka’s performance noteworthy is that it has achieved this without relying heavily on government spending. Government expenditure accounts for only 33.2 per cent of the state’s total health expenditure. In contrast, public spending contributes 64.4 per cent of health expenditure in Uttarakhand and 68.3 per cent in Jammu & Kashmir.
The data suggests that Karnataka has managed to keep healthcare costs relatively affordable for citizens while maintaining a balanced spending model. Residents spend an estimated Rs 2,049 per person annually from their own pockets on healthcare. While this is higher than the figures reported in Uttarakhand and Jammu & Kashmir, it remains well below the national average of Rs 2,767.
The state’s overall healthcare expenditure stands at Rs 7,024 per person annually, exceeding the national average of Rs 6,373. Karnataka also spends considerably more per person on healthcare than Uttarakhand and Jammu & Kashmir. Yet, healthcare expenditure accounts for only 0.7 per cent of the state’s Gross State Domestic Product (GSDP), lower than the national average and below several comparable states.
These figures present an interesting paradox. Karnataka ranks among the states where families are least vulnerable to medical expenses despite not being one of the highest public spenders on healthcare relative to its economic size.
Health experts attribute this achievement to the state’s long-standing investments in healthcare infrastructure, welfare programmes and access to affordable medical services. The combination of public health initiatives and an extensive network of government facilities appears to have played a crucial role in reducing dependence on expensive private healthcare.
BOX | Why Karnataka is performing well
According to Ritvik R. Pandey, Principal Secretary, Department of Health and Family Welfare, schemes such as Arogya Karnataka and Yashaswini have significantly strengthened healthcare access. He said government hospitals provide free medicines, diagnostics and advanced services including CT scans, MRI facilities and dialysis. Nearly 900 medicines are available free of cost, helping patients avoid expensive treatment in private hospitals and reducing overall healthcare expenditure for families.